Wednesday, August 21, 2013

Stable is the Word in the Canadian Housing Market

TORONTO, June 25, 2013 /CNW/ - After three years of varied periods of
growth and decline across the country, the Canadian housing market is
starting to stabilize, according to the latest housing report released
by Genworth Canada. While the economy continues to strengthen, modest
growth in the housing market is the trend for the next five years.

"The Canadian housing market is transitioning to a balanced level of
supply and demand," said Brian Hurley, Chairman and CEO of Genworth
Canada. "While lower demand has cooled the housing market, this latest
research shows moderate growth over the next few years which points
towards a more stable market for both buyers and sellers."

The current condition is due in part to the tightening of regulations,
but also continued warnings to consumers on their debt levels.
Consumers appear to be heeding the advice and stabilizing their
financial position before the Bank of Canada begins to raise its rate.
The Spring 2013 Metropolitan Housing Outlook notes that healthy employment gains since the end of the recession have
helped move mortgage payments in arrears and bankruptcies to a downward
trend, except in British Columbia where payments in arrears have
flattened after an upward trend from 2008 to 2010. Despite the low
interest rates, price growth for both new and existing homes has been
decelerating. The report also notes that while total mortgage
approvals are falling, this decline is entirely fuelled by resale
homes, as mortgage approvals for new homes increased by 3.4 per cent.